Taking a step ahead to boost the digital payment ecosystem in the country the Reserve Bank of India (RBI) has bought a new prepaid payment instrument (PPI). The announcement was made in the circular released by RBI on Tuesday.
The new PPI as of now would be used only for the purchase of goods and services up to a limit of Rs 10,000 per month. Much like your payment wallets, PPIs would be financial instruments that facilitate the purchase of goods and services against the value stored on such instruments.
As per the RBI’s circular PPIs would be issued by banks and non-banking ‘PPI Issuers’ after obtaining minimum details of the holder (KYC). The circular also spells out monthly and yearly loading limits in the PPI.
The circular says that. “The amount loaded in such PPIs during any month shall not exceed Rs 10,000 and the total amount loaded during the financial year shall not exceed Rs 1,20,000”. Further, the circular says that the amount outstanding at any point of time in such PPIs shall not exceed Rs 10,000.
Users of PPI would get an option to close the instrument at “any time and also allow to transfer the funds ‘back to source’ at the time of closure. The directives are issued in accordance with the Payment and Settlement Systems Act, 2007 said the circular.
Credits: India Today